Connacher enters into C$100 million three-year revolving facility

By Jennifer Chiou

New York, May 31 - Connacher Oil and Gas Ltd. announced that it entered into an expanded and extended three-year revolving operating credit facility sized at C$100 million.

The loan comes in conjunction with the company's successful tender offer and consent solicitation for its 11¾% first-lien senior secured notes due 2014 and 10¼% second-lien senior secured notes due 2015.

On Tuesday, the company applied the bulk of the C$869 million of net proceeds from two series of notes to settle the early tenders for $199.41 million, or 99.71%, of the 11¾% notes and $583,444,000, or 99.34%, of 10¼% notes.

Those tenders were received as of the consent deadline of 5 p.m. ET on May 23.

The company completed the issue of $550 million of 8½% senior secured second-lien notes due Aug. 1, 2019 and C$350 million face value of 8¾% senior secured second-lien notes due Aug. 1, 2018 and purchased $782.9 million of notes in the tender offer.

The offer will end at midnight ET on June 7.

Connacher added in a news release that the facility is part of its effort to further enhance financial capacity and flexibility.

The Calgary, Alta.-based integrated oil company said it will continue to have no financial maintenance covenants for its long-term debt and modest and acceptable financial maintenance covenants with respect to its revolver.

© 2015 Prospect News.
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